Lambeth council will receive £10m of funding from the Greater London Authority to help build 1,582 homes in the borough.
Of these new homes, 864 will be affordable.
Lambeth is one of 20 local authorities to get this funding as part of the London housing zone scheme that was set up in June 2014 by mayor of London Boris Johnson and chancellor George Osborne.
The scheme has been given £561.8m in funding from the GLA and aims to provide an additional 50,000 new build homes in the capital by 2025.
Johnson said: “For at least 30 years, under many different governments, London’s housing supply has not kept pace with its population growth. As a result, we must almost double the current rate of house building to at least 42,000 homes a year to meet the capital’s historic and future housing needs.’’
